hold on there's just too much going on in Congress lmao...
Redefines how gambling losses and related expenses are tax deductible.
Sponsored by Rep. Miller (R-OH) and Rep. Horsford (D-NV).
Introduced in House, referred to committee.
This bill amends the tax code to reinstate specific rules for how gambling losses and expenses related to gambling activities can be deducted. The current tax law allows taxpayers to deduct gambling losses only up to the amount of their gambling winnings. This bill clarifies that all expenses incurred in carrying on any wagering transaction are included in this limitation. Representative Miller, a Republican from Ohio, and Representative Horsford, a Democrat from Nevada, introduced the bill, which is now being reviewed by the House Ways and Means Committee.
Introduced Jan 8, 2026
This bill has been introduced in the House of Representatives and referred to the House Ways and Means Committee. Before it can move forward, the committee must review it and potentially vote on it. If it passes the committee, it would then need to be voted on by the full House, then the Senate, and finally signed by the President to become law.
If this bill becomes law, the way you calculate your taxable income related to gambling could change. Currently, you can only deduct gambling losses up to the amount of your gambling winnings. This bill specifically adds that all expenses incurred while engaging in gambling, such as travel, accommodations, or other costs directly related to your wagering activities, would also be limited to the amount of your winnings. This could mean fewer tax deductions for those who regularly gamble and incur significant expenses, potentially leading to a higher tax bill.
Supporters Say
Proponents might argue this clarifies tax law and ensures gambling deductions are appropriately limited to actual gains.
Critics Say
Opponents may contend it could unfairly burden individuals who incur legitimate expenses while pursuing gambling activities.
Supporters of the bill could argue it provides clearer guidance on what counts as a "loss from wagering transactions," potentially preventing taxpayers from using related business expenses to reduce their overall taxable income beyond what they won. Critics, however, might argue that it could disproportionately affect those who spend money on travel, lodging, or other costs associated with gambling activities, even if they aren't professional gamblers, limiting their ability to offset these costs.